Happy Friday, POLITICO Pro Morning Energy readers. The OECD says governments could do more to tax inefficient, dirty energy use, the U.K. says it’s right where it wants to be on renewables, Israeli ministers look at how to get their big Leviathan gas field off the ground, and oil and gas companies are readying themselves for an Iranian rush.

— WHAT’S HAPPENING

MAD MAX MOTORBIKES: Fossil fuels aren’t going to last forever, and so an Australian design student has come up with a motorcycle powered by the wind and the sun. The bike’s name: Strangeworld. The inspiration: Dr. Strangelove. The idea: In 2050 when fossil fuels will be in short supply, Australians can ride their bikes even if petrol is no longer an option. Either our motorbike-riding editor Jan Cienski will have to emigrate to Australia, or some wizzkid in Europe comes up with a wind- or sun-powered motorcycle. Got any innovators in your family or friends circle? Send them our way. More on CNET: http://cnet.co/1HhlKjc.

WATCH WHAT YOU TAX — OECD: Because at the moment, taxes are doing little to help reduce energy use, improve efficiency or drive a shift towards cleaner sources, the OECD has found. In fact, the taxes (in 34 OECD states and Argentina, Brazil, China, India, Indonesia, Russia and South Africa) are “low and incoherent,” said Secretary General Angel Gurría. The effective tax rate in the 41 countries came it at a weighted average of €14.8 per ton of CO2, when it should be around €30. Get the report here: http://bit.ly/1FCRM1N.

BEWARE THE CLIMATE RISKS: There’s been a lot of news this week about how finance and investment should be used to tackle climate change, and here’s some more. European banks are failing to account for the risks and opportunities created by climate change, water scarcity and other environmental and social issues, KPMG found in a survey of 12 banks, carried out for WWF. “This is disturbing, because the impacts of these megatrends on banks’ earnings will further increase in the coming years,” said KPMG’s Barend van Bergen. The way banks deal with environmental and social issues will have a growing effect on their profit, he added. Download the report here: http://bit.ly/1eIXbPZ.

BIG SPENDER: None other than Bill Gates is planning to double his personal investments in green tech to $2bn over the next five years. Why? To “bend the curve” in combating climate change. His investments in innovative green companies, including battery storage, next-generation nuclear and free air carbon capture, so far have come to about $1 billion. According to Gates, current technologies can only reduce global CO2 emissions at a “beyond astronomical” economic cost. The hope: the firms will develop breakthrough technologies that reduce those costs and help save the planet. The FT has the story (behind the paywall): http://on.ft.com/1NfXsVg

OIL INDUSTRY, STEP UP ON CLIMATE: That’s the message of UN climate chief Christiana Figueres, responding to a letter by BG Group, BP, Eni, Royal Dutch Shell, Statoil and France’s Total, which had called for a global carbon market. Following the G7’s commitment to decarbonize by the end of the century, Figueres now wants to see how the companies intend to meet that goal and what prices would facilitate a fuel switch away from coal to gas, the driver behind their call for a global carbon pricing system. While Figueres said she was confident the oil companies genuinely want to tackle climate change, she also wants to see commitment from the industry to make the world proud. Reuters has the story: http://bit.ly/1KfvjQc.

RUSSIA AND THE EU’S ENERGY UNION: Moscow’s annexation of Crimea and support for separatists fighting in eastern Ukraine is driving Europe’s energy policy on everything from natural gas, renewables, energy efficiency and electricity to building an EU-wide energy union, the bloc’s energy and climate commissioner told POLITICO. From Kalina: http://politi.co/1Kb1zCy.

RUSSIA’S LEG UP (IN THE CZECH REPUBLIC): When it comes to the gas and nuclear sectors in the Czech Republic, Russian state-run energy heavies Gazprom and Rosatom get a clear advantage over their competitors, researchers at the Masaryk University in Brno and the Prague Security Studies Institute have found. “They are stretching the possibilities to the maximum extent allowable,” said Martin Jirušek, from Masaryk University. Nuclear group Rosatom, for instance, managed to sweeten its bid to build two reactors at Temelín by also including offers on weapons, among other things. More from Radio Prague, including a look at how Moscow helped Gazprom secure a pipeline deal in China: http://bit.ly/1IfCJ4s.

HINKLEY DREAM DASHED?: Earlier this week we told you to expect Austria to challenge the European Commission’s approval of the UK’s state aid for the Hinkley Point C nuclear project in Somerset. Now, Sara takes a closer look at the disagreement, the safety concerns over Areva’s European pressurized reactor technology, and how the case could influence what member states can and can’t support. “If there’s any complaint about the U.K. model, it should reflect the fact that the model incorporates all zero-carbon technologies, not just one,” said Michael Kirst, from nuclear company Westinghouse Electric. Here’s more: http://politi.co/1BOLIbU.

UK TO EU — WE’RE RIGHT WHERE WE WANT TO BE: The U.K. may be getting flak for being in last place among the 28 member states in the renewables race for 2020, but it is on track to meeting its 15 percent goal, the Department for Energy and Climate Change (DECC) said in its latest quarterly report. In fact, the country has exceeded its interim target of having 5.4 percent of all energy come from renewables in 2013 and 2014, reaching 6.3 percent. The Carbon Brief’s Simon Evans tracks the U.K.’s progress: http://bit.ly/1SN7eSs.

— AND RENEWABLES LEAD THE WAY: Renewable energy output surged ahead, now accounting for 22.3 percent of the U.K.’s electricity mix, up from 19.6 percent in the last quarter of 2014. Power from onshore wind — for which the government is rolling back subsidies — grew by 4.7 percent to 7 TWh, while offshore wind rose by 6.3 percent and solar by 41 percent (though it still only provides 0.8 TWh). It was a mixed story for fossil fuels: oil output fell by 5 percent, gas stayed flat, and coal production rose by 8 percent. Here’s DECC’s report: http://bit.ly/1TOGNxa.

— WE’VE COME A LONG WAY: That’s what DECC Secretary Amber Rudd said in a speech to the renewables industry this week. The UK didn’t have any offshore wind before 2000. Now it expects to have 30 offshore wind farms by the end of this year. “Keeping the lights on is non-negotiable,” she said. “Tackling climate change is also non-negotiable.” Here’s the speech: http://bit.ly/1GK0Zt5.

DITCH THE ETS, OR BETTER, MAKE IT WORK: Ahead of the Commission’s Emissions Trading Scheme reform proposals, due out on July 15, climate campaign group Sandbag says the real problem with the system is the mismatch between its cap on emissions, and actual emissions, which are falling fast. Unambitious caps, a recession and generous offsetting provisions created a massive surplus of allowances, which Sandbag estimates will grow to over 4 billion tonnes by 2020. And don’t even think about it going anywhere, because ETS will always exist alongside other more targeted climate policies, and it needs to be designed to take into account this reality. “It has become clear to us that the EU’s climate and energy package of 2020 was flawed and we cannot run the risk of making the same mistakes in the 2030 package,” said Sandbag’s Baroness Bryony Worthington. Read the report here: http://bit.ly/1TOhmeY.

ENERGY POVERTY AN EU REALITY: Nearly 11 percent of the EU’s population can be called energy poor, according to a European Commission study published yesterday. That means an estimated 54 million people (using 2012 figures) — mainly those living in Southern and Central Europe. What’s behind the phenomenon? Rising energy prices, low income and energy inefficient homes. The long-term solution: energy efficiency and more money. Read it here: http://bit.ly/1FD7TfV.

WHO’S STALLING THAT LEVIATHAN FIELD?: Israeli ministers met yesterday in a bid to get the offshore Leviathan gas field project moving again, after the country’s Antitrust Authority threw a spanner in the works by questioning whether the partnership of companies developing the field should be broken up to preserve competition. The plan would require the operators, Israel’s Delek Energy and the U.S.’s Noble Energy, to sell stakes in smaller offshore fields so that they can hold on to Leviathan (the biggie). In addition, the government would cap prices for gas sales into Israel until it becomes competitive. The antitrust issue is the latest in a string of setbacks for the project, including controversy over the Israeli government’s decision to limit gas exports from Leviathan to 40 percent of its reserves (meaning 60 percent must be sold into Israel). More from Bloomberg: http://bloom.bg/1IfFqmG.

SHOPPING SPREE: State-owned utilities are coming up for sale in Central and Eastern Europe — again, Natural Gas Europe reports. CEE governments started privatizing their energy companies 10 years ago as they joined the EU, selling many of the assets to European majors such as Enel and GDF (now known as Engie). Now, as those majors are putting their assets back on the market, CEE governments (Lithuania, Hungary, Estonia and Slovakia) are starting to tighten their grips again, particularly in an effort to create multi-commodity energy suppliers that could eventually provide single bills for all types of energy. More from PhD student Vija Pakalkaite: http://bit.ly/1BCJETN.

GOING PRIVATE IN TURKEY: Ankara plans to privatize 29 hydroelectric and gas-fired power plants by 2020, the government announced in its Official Gazette this week. This is part of a privatization push already underway with the aim of attracting local investors. The share of energy produced by the private sector was 72 percent last year, compared with 57 percent in 2003. However, the government plans to hold onto its largest hydropower plants despite a $20 billion offer for one of them, the energy minister said in December. More from Turkey’s Hurriyet Daily News: http://bit.ly/1LwDdoN.

— WHAT’S COMING

BETTING ON IRAN: Ahead of a looming deadline to finalize negotiations on Iran’s nuclear program on June 30, signs are emerging that major energy companies are getting ready to re-enter the country should sanctions be lifted. An industry insider tells us that, given Iran’s oil and gas reserves, “it’s a very interesting country,” and should Iran change its contract framework replacing current buyback deals which are highly “rigid” then “companies will be knocking on Iran’s door.” Brussels has also got its eyes on the country as part of its longer-term strategy to diversify away from Russia and strengthen the bloc’s energy security, especially in Southeastern Europe.

NO TO FRACKING: That’s the decision from the U.K.’s Lancashire county council, which yesterday rejected a bid by Cuadrilla to explore for shale gas. The decision is a blow for the U.K.’s hopes of unleashing a U.S. style fracking revolution and shows the depth of local opposition. The government is upset, but environmental activists are ecstatic. Cuadrilla gets another bite at the apple on Monday, when its application to frack a site near Blackpool comes up for consideration. The FT has paywalled details: http://on.ft.com/1QSm0tu

Thanks to Helena O’Rourke-Potocki

**A message from FuelsEurope: Are EU refineries energy Efficient? When it comes to efficiency, the EU refining sector is very competitive, and its energy intensity levels have steadily declined since the early 1990s. The most energy efficient EU refineries are amongst the best in the world. In fact, the EU average is second only to the new super-scale refineries found in Asia. Although some of these new refineries can create small advantages in energy use, it is important to remember that energy is the biggest cost for a refinery and every little improvement is significant: http://bit.ly/1diAAYS **